GURUFOCUS.COM » STOCK LIST » Technology » Software » WidePoint Corp (AMEX:WYY) » Definitions » Degree of Operating Leverage

WYY (WidePoint) Degree of Operating Leverage : -1.95 (As of Mar. 2025)


View and export this data going back to 1995. Start your Free Trial

What is WidePoint Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. WidePoint's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.95. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for WidePoint's Degree of Operating Leverage or its related term are showing as below:

WYY's Degree of Operating Leverage is ranked better than
75.73% of 2666 companies
in the Software industry
Industry Median: 0.785 vs WYY: -1.95

WidePoint Degree of Operating Leverage Historical Data

The historical data trend for WidePoint's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

WidePoint Degree of Operating Leverage Chart

WidePoint Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.20 1.19 -200.77 -6.30 -1.56

WidePoint Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.40 0.91 -0.16 -1.56 -1.95

Competitive Comparison of WidePoint's Degree of Operating Leverage

For the Information Technology Services subindustry, WidePoint's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


WidePoint's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, WidePoint's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where WidePoint's Degree of Operating Leverage falls into.


;
;

WidePoint Degree of Operating Leverage Calculation

WidePoint's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -1.821 (Mar. 2025) / -3.423 (Mar. 2024) - 1 )/( 142.582 (Mar. 2025) / 114.96 (Mar. 2024) - 1 )
=-0.468/0.2403
=-1.95***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


WidePoint  (AMEX:WYY) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


WidePoint Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of WidePoint's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


WidePoint Business Description

Industry
Traded in Other Exchanges
Address
11250 Waples Mill Road, Suite 210, South Tower, Fairfax, VA, USA, 22030
WidePoint Corp is a provider of Technology Management as a Service (TMaaS) that consists of federally certified communications management, identity management, interactive bill presentment and analytics, and an Information Technology as a Service solution. Its solutions include Telecom Lifecycle Management, Digital billing communications solutions, and Mobile and Identity management. Geographically, the company generates a majority of its revenue from the United States and the rest from Europe.
Executives
Jin Kang officer: President - iSYS, LLC 1163 DALEVIEW DRIVE, MCLEAN VA 22102
Robert J George officer: Chief Financial Officer
Todd Dzyak officer: COO 11250 WAPLES MILL ROAD, SOUTH TOWER 210, FAIRFAX VA 22030
Philip N Garfinkle director C/O WIDEPOINT CORPORATION, 11250 WAPLES MILL ROAD, SUITE 210, FAIRFAX VA 22030
Jason Holloway officer: EVP and Chief Sales and Market C/O 7926 JONES BRANCH DRIVE, SUITE 520, MCLEAN VA 22102
Julia A Bowen director 7926 JONES BRANCH DRIVE, SUITE 520, MCLEAN VA 22012
James Bernard Rice director 11250 WAPLES MILL ROAD, SOUTH TOWER, SUITE 210, FAIRFAX VA 22030
Ian Sparling officer: CEO, Soft-Ex 7926 JONES BRANCH DRIVE, SUITE 520, MCLEAN VA 22102
John J Fitzgerald director 2000 EDMUND HALLEY DR, RESTON VA 20191
Otto J Guenther director 8611 CROSS OAKS LN, FAIRFAX STATION VA 22039
Richard L Todaro director C/O GREAT AMERICAN GROUP, INC., 21255 BURBANK BLVD., SUITE 400, WOODLAND HILLS CA 91367
Kellie H Kim officer: Chief Financial Officer 11250 WAPLES MILL ROAD, SUITE 210, FAIRFAX VA 22030
Nokomis Capital, L.l.c. 10 percent owner 1717 MCKINNEY AVENUE, SUITE 850, DALLAS TX 75202
Morton S Taubman director 1201 FIFTEENTH STREET, N.W., SECOND FLOOR, WASHINGTON DC 20005
Kito Mussa officer: Interim CFO C/O 7926 JONES BRANCH DRIVE, SUITE 520, MCLEAN VA 22102